The Panda series has existed and run alongside China’s recent modern history. Since the beginning of the series in 1982 China has certainly had its fair share of ups and downs. Economic markets have been heavily influenced by these ebbs and flows in Chinese socio-economic and political history, and needless to say Panda coins have been no exception. Whether it was the tragic culmination of the pro-democracy demonstrations in Tiananmen Square which took place in June 1989, or the hand over of Hong Kong from the UK back to China in 1997, these events have certainly had their effect on Panda coin markets, both directly and indirectly. While the effect on supply and demand for Panda coins at the time of these events would no doubt have been noticeable, these influences are far-reaching and long-lived. They are still felt today, and are manifested in the market prices and surviving mintages for certain coins in this iconic series.

1997 Asian Financial Crisis

One event in particular which seems to have made a significant impact on the gold Panda coins market is the Asian Financial Crisis of 1997. As a result of the economic instability in South East Asia sparked by the collapse of the Thai baht, Asian demand for Panda coins took a nosedive as potential buyers shied away from pouring their money into what might prove to be an unstable currency. As it turned out, although China was affected by the Asian Financial Crisis, the negative effect was no way near as deeply felt in China compared to other South East Asian economies such as those in South Korea, Thailand, and Indonesia. However, hindsight is a wonderful thing, and in such an uncertain economic atmosphere many of the 1997 and 1998 Pandas were melted for their bullion value. Perceiving this low level of demand, the mints and distributors would have...